Sept 25 (Reuters) - Below are answers to some questions about the faltering talks between the ruling Hamas Islamist movement and President Mahmoud Abbas on forming a Palestinian unity government:
WHY HAVE TALKS STALLED?
The crux of the problem is finding language for a political platform that gives Hamas 'wiggle room' on recognition of Israel but goes far enough to persuade international donors to ease an aid embargo on the militant group's government. Hamas will not accept anything that explicitly confers recognition of Israel. Abbas has not sought explicit recognition, but has asked Hamas to honour interim peace deals with the Jewish state. Hamas says it will abide only by agreements that are in the 'interest of the Palestinian people', thus allowing it to reject past deals such as the 1993 Oslo peace accords.
WHAT HAPPENS NEXT?
Abbas is expected to go to the Gaza Strip on Tuesday for more talks. These could be a last-ditch attempt to get Hamas to accept the interim peace accords. While Hamas officials have publicly expressed optimism that a unity government can be formed, it is unlikely they will make enough concessions to enable such a coalition to take shape. In that event, the aid embargo continues, poverty worsens and the risk of internal violence between Hamas and Abbas's Fatah movement grows.
WHAT ARE ABBAS'S OPTIONS?
Abbas could sack Prime Minister Ismail Haniyeh of Hamas, arguing he had to act because of the sharply deteriorating economy and a month-long strike by government workers angry over unpaid wages. While the United States and Israel would be happy if Abbas did so, it is unlikely that he will because of the risk of violence. In the end, Abbas might allow talks to collapse, hoping striking workers and public sentiment will be enough to force a change from Hamas. However, Hamas's core constituency, especially in Gaza, is still strong.
WHAT WILL HAMAS DO?
Hamas is expected to pursue contacts with Abbas to try to form a unity government but will not recognise Israel, regardless of the pressure. If talks fail, Hamas is expected to keep its grip on government while using various means to bring cash into Palestinian areas despite the aid embargo.
Hamas might eventually bow to pressure and agree to form a government of technocrats, but some of them would be close to Hamas. While such a government might open the way to contacts with some European countries, it would not be enough for Israel or the United States.
WHAT WILL THE INTERNATIONAL COMMUNITY DO?
When Hamas took power in March, the so-called Quartet of Middle East mediators set three conditions for easing the aid embargo: the Palestinian government must recognise Israel, renounce violence and abide by interim peace deals.
Six months later, the Quartet -- the United States, the European Union, the United Nations and Russia -- appears to have lowered the bar for any unity government, saying its platform should 'reflect' the three conditions rather than meet them.
The change offers Abbas and Hamas additional room to manoeuvre. However, U.S. and Israeli officials believe the concession will have little effect since unity talks appear near collapse.
The United States takes a harder line than its Quartet partners and has threatened to shun any unity government headed by Hamas. Washington could undercut the new government by putting pressure on international banks not to deal with it. However, diplomats doubt Washington will prevent the Europeans from easing the embargo if Hamas starts meeting some conditions.